‘Equity release’ – the withdrawal of cash from homes by people who paid off their mortgages long ago – has surged to its highest level since 2007, reports the FT. In the first quarter of 2014 the amount released rose by over a third to £315 million. On average, people take about a quarter of the value of their property.
As for any important investment decisions, equity release should not be entered into lightly.
Clear and detailed comparisons with alternatives need to be made with all of the potential consequences of the choices available taken into account.